The short-run aggregate supply curve is:
A) downward sloping.
B) upward sloping.
C) horizontal at the natural level of employment.
D) vertical at the natural level of employment.

Question

Quizplus · Accepted Answer

The short-run aggregate supply curve is upward sloping because, in the short run, firms tend to increase their output in response to higher prices, partially due to the slow adjustment of wages and other costs.

The Short-Run Aggregate Supply Curve Is